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The National Futures Association Board of Directors did not immediately act on a motion to ban former MF Global CEO Jon Corzine for life, but left open to possibility of the self regulator taking action after ongoing investigations currently underway by other government agencies are complete.

“Once the appropriate agencies have completed their investigations, NFA has the authority to bring disciplinary action against Mr. Corzine for violations of any NFA rules that occurred while he was a member,” according to a statement from the NFA. “The sanctions for disciplinary actions could include a lifetime ban and significant monetary fines.”

Sources indicate the NFA board had mixed feelings about the Koutoulas / Roe proposal to ban Jon Corzine from membership. While damage done to the commodity markets has been significant, an investigation into MF Global executives initially appeared not to take place. Official sources close to the investigation were quoted in The New York Times as saying the “case was cold” before MF Global executives were questioned, despite the fact that criminally suspicious information was available in the public record. Arguments against the motion likely included jurisdictional issues with other regulatory agencies, the fact Mr. Corzine currently is not an NFA member and interference with ongoing investigatory efforts.

“The Board notes that Mr. Corzine is not currently a member of NFA. The Board is aware of publicly available information that raises issues concerning Mr. Corzine’s fitness for NFA membership. If Mr. Corzine applies for membership in the future, he will not be granted membership unless NFA, after completing its fitness investigation, resolves those issues to its satisfaction.”

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